September 9, 2020 7:05pm

Don’t forget the key word – SUSTAINABILITY

The Biostage (BSTG -$0.12) Chronicles …  Question#1: WHERE does the accounting firm, RMS US LLP stand and HOW will it justify its OVERSIGHT of proper accounting standards re a forthcoming audit for Q3? Isn’t it about time the SEC took NOTICE of BSTG’s recent EXODUS filings? <read more follow-on questions>

Pre-open indication results: 7 Hits and 1 MISS

Earnings: Applied Genetic Technologies (AGTC -$0.87) net loss was $14.5 M for the Q4/2020 and $45.9 M for the year ended 6/30/2020 with a cash position of $80.5 M with a runway until Q4/2021.

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The Dow closed UP +439.58 points (+1.60%), the S&P closed UP +67.12 points (+2.01%) while the Nasdaq closed UP +293.87 (+2.71%)



Indexes (Dow, S&P and Nasdaq) jumped higher on Wednesday as tech and “our” universe of RegMed, cell and gene therapy sector shares from steep losses that rocked back most of their record highs.

The Nasdaq had its biggest one-day gain since April 29, when it surged 3.6%.

Note: “The major averages trimmed their gains with less than 30 minutes left in the session reported ByteDance and the U.S. government were discussing ways to avoid the sale of TikTok’s U.S. operations. Walmart and Microsoft — two companies that were in talks to buy TikTok — gave back some of their solid gains.” <The Wall Street Journal and CNBC>

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open:  a needed bounce ...   


An analyst asks questions about Biostage (BSTG) and as usual doesn’t get a response from this companies. Wonder WHY the “EXODUS” and ensuing issues?

The Biostage (BSTG -$0.12 to $1.35 ) Chronicles: Question #2: notice that someone or something is “remediating” i.e. “pumping” by the MASSIVE buying of shares TODAY (24,972 shares traded with a three (3) month average of 4617 shares traded) as yet another BOD member and audit chair resigns (SEC 8-K filing) – there is NOT anyone in accounting left (the former controller also walked out as well) –  in the company?

Question#3: WHO is left, will the CSO William Fodor, PhD, an officer of the company and James Shmerling, a BOD member be caught-up and liable for some of these actions as a director?

Question#4: WHAT about the OUTSTANDING BILL of $429,500.00 “GIFT” to Connecticut Children’s Hospital (James Schmerling is CEO)– was this bill included in the liabilities and payables in the Q’s or was it “misplaced”?

  • In ANY ordinary circumstance, a company stock would take a “Niagara Falls splash” with a “mist” of actions after these losses.

A final question#5: Is there a lot of “laundry” waiting to be washed … by RMS US LLP?


RegMed/Cell and Gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Wednesday opened positive at 29/5 and 1 flat, stayed positive at the mid-day at 30/3 and 2 flats, closing positive at 27/5 and 3 flats;
  • Tuesday opened negative at 19/15 and 1 flat, popped positive at the mid-day at 19/14 and 2 flats, at 3 p.m. was 19/25 and 1 flat closing negative at 14/19 and 2 flats;
  • Monday was a market holiday
  • Friday opened positive at 17/16 and 2 flats, flipped negative at 10:30 a.m. to 2/32 and 1 flat, stayed negative at the mid-day at 3/31 and 1 flat, closing negative at 5/28 and 2 flats;


Pre-open indication results: 7 Hits< Biostage (BSTG -$0.12) -sell into strength – Fate Therapeutics (FATE +$0.88), Sage Therapeutics (SAGE +$0.57), Intellia Therapeutics (NTLA +$1.35), Editas Medicine (EDIT +$1.70), CRISPR Therapeutics (CRSP), AxoGen (AXGN +$0.03)> and 1 MISS < Global Blood Therapeutics (GBT -$0.98)>


Key metrics:

  • Sector volume was LOW with 1 of the 27-upside having higher than the 3-month average volume and the 2 of 5-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 5-upside were +0.06% (ALNY) to +7.73% (NTLA) while the 27-downside ranges from -0.40% (ADRO) to -14.19% (AGTX); 


Hammered in today’s market:

  • Applied Genetic Technologies (AGTC), Biostage (BSTG), Global Blood Therapeutics (GBT), MiMedx (OTC Pink sheets: MDXG), Aduro Biotech (ADRO) to name 5 of the 5 declining of the 35 covered

Jumping with share pricing momentum:

  • CRISPR Therapeutics (CRSP), Ultragenyx (RARE), Editas Medicine (EDIT), Intellia Therapeutics (NTLA), BioLife Solutions (BLFS) to name 5 of the 27 inclining of the 35 covered


The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB closed up +1.95% and XBI also closed up +2.21%
  • Tuesday, the IBB closed down -1.86% and XBI also closed down -1.35%
  • Monday was a market holiday
  • Friday, the IBB closed down -0.48% and XBI also closed down -1.14%


Wednesday’s (10 of 27) incliners:

  • CRISPR Therapeutics (CRSP +$3.79 after Tuesday’s-$0.56 following Friday’s -$3.67);
  • Ultragenyx (RARE +$3.35 after Tuesday’s -$2.83 following Friday’s +$2.28);
  • Editas Medicine (EDIT +$1.70 after Tuesday’s -$1.22 following Friday’s -$1.47);
  • Intellia Therapeutics (NTLA +$1.35 after Tuesday’s -$0.65);
  • BioLife Solutions (BLFS +$1.08);
  • bluebird bio (BLUE +$0.960;
  • Fate Therapeutics (FATE +$0.88 after Tuesday’s -$0.70 following Friday’s -$1.28);
  • Cellectis SA (CLLS +$0.79);
  • Sage Therapeutics (SAGE +$0.57 after Tuesday’s -$0.63);
  • Vericel (VCEL +$0.44);

Wednesday’s (5 of 5) decliners:

  • Global Blood Therapeutics (GBT -$0.98);
  • Applied Genetic Technologies (AGTC -$0.87 after Tuesday’s +$0.27 following Friday’s +$0.04);
  • Biostage (BSTG -$0.12 after Friday’s +$0.12);
  • MiMedx (OTC Pink sheets: MDXG -$0.05);
  • Aduro biotech (ADRO -$0.01);

Closing flat: 3 – Precigen (PGEN), ReNeuron (RENE.L) and Stemline Therapeutics (STML – acquired)


Percentage (%) movement/range statistics: 360 degrees comparisons

  • Wednesday’s percentage (%) of the 5-upside were +0.06% (ALNY) to +7.73% (NTLA) while the 27-downside ranges from -0.40% (ADRO) to -14.19% (AGTX); 
  • Tuesday’s percentage (%) of the 14-upside were +0.13% (ALNY) to +8.89% (BSTG) while the 19-downside ranges from -0.06% (VCEL) to -5.26% (ADRO); 
  • Monday was a market holiday
  • Friday’s percentage (%) of the 5-upside were +0.33% (IONS) to +7.52% (BLCM) while the 28-downside ranges from -0.89% (SGMO) to -8.01% (PGEN); 


Sentiment and a few daily indicators:

AstraZeneca, one of the frontrunners in the global race for a Covid-19 vaccine, announced Tuesday that it was pausing its late-stage trial to review safety data. The company said the pause is a “routine action” and that it is trying to expedite the review to “minimize any potential impact on the trial timeline.” <CNBC>

  • Wednesday 6.32cases
  • Tuesday 6.31 cases
  • Monday was a holiday
  • Friday 6.15 cases

Wednesday’s day’s death rate totaled 189,600 after Tuesday’s 189,366 following Monday’s miss (my bad) after Friday’s 186,800 after Thursday’s 185,700 and last Wednesday’s 184,600 <Johns Hopkins University>



Upside volume: 

  • Wednesday: 1 out of the 27-upside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 14-upside had higher than the 3-month average volume;
  • Monday was a holiday
  • Friday: 4 out of the 5-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -2.65 points or -8.42% at 28.81
  • Tuesday was up +0.71 points or +2.31% at 31.46
  • Monday was a holiday
  • Friday was down -2.85 points or +8.48% at 30.75

Downside volume:

  • Wednesday: 2 out of the 5-downside had higher than the 3-month average volume;
  • Tuesday: 3 out of the 19-downside had higher than the 3-month average volume;
  • Monday was a holiday
  • Friday: 8 out of the 28-downside had higher than the 3-month average volume;


September, the third month of Q3 …

Wednesday closed positive with 27 advancers, 5 decliners and 3 flats

Tuesday (9/10) closed negative with 14 advancers, 19 decliners and 2 flats

Monday was a holiday  

Friday closed negative with 5 advancers, 28 decliners and 2 flats

Thursday closed negative with 2 advancers, 32 decliners and 1 flat

Wednesday closed negative with 18 advancers, 25 decliners and 2 flats

Tuesday (9/1) closed negative with 4 advancers, 29 decliners and 2 flats


The Bottom line:  On a short-term basis, the sector has migrated from five (5) ugly September sessions and 2 positive closes (plus 1 holiday) and I would be afraid to say – BUY as today is definitely a … bubblicious gum chewing day.

Over the previous three sessions, the S&P 500 lost nearly 7%. The Nasdaq sold off by more than 10% over the previous three days amid a rotation while both benchmarks reached all-time highs in the prior week.

This could also be the start of another dramatic sell-off, new highs will become overbought and electronic algorithmic trading will then chew on the fat.


Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.